Municipalities are digitally transforming urban environment into smarter cities aimed at addressing urban growth and social challenges. This transition of urban space influenced by Information and Communications Technology (ICT) enables novel business models and Virtual Enterprises (VE) processes. Presently, there is need to provide insights into the state-of-the-art of VE and development of digital transformation in order to improve services provided to citizens and stakeholders in smart cities. Therefore, the aim of this study is to employ ArchiMate as the modelling language to demonstrate the digitalization of VE to depict how VE collaborates in smart cities. Evidence from a focus group discussion was modelled in ArchiMate to present findings on how VE can be digitalized to provide collaborative services. Implications from this study provide insights to guide VE to understand the imperative need of digital changes in smart cities.